Project Report On

Hindustan Unilever Ltd

By

General Information
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 46.5 billion in 2011. Unilever has about 52% shareholding in HUL.

Vision & Mission

We work to create a better future everyday We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small everyday actions than can add up to a big difference for the world. We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact.

Soap and Detergent Brands

1. Soaps

2. Detergents

Soap Products

1. Variants

Since 1993, Indian women have relied on Dove for beautiful skin

Dove-Gentle Exfoliating Bar Dove-Fresh Moisture Dove-Crme Beauty

2. Lifebuoy has journeyed from humble beginnings of being a chunky red bar of soap to an evolved range of general and specialized products across formats, offering solutions in the health and hygiene space. Key facts Variants Worlds No. 1 Selling Germ Protection Soap Distribution across 50 lakh + stores across the country

Lifebuoy Total 10 Lifebuoy Mild Care

Lifebuoy Betel Leaf Lifebuoy Vita Protect

Lifebuoy Cool Fresh

3. With the goodness of glycerine & natural oils, Pears is trusted for being gentle, and is recommended by doctors and paediatricians worldwide. Variants Pears Pure & Gentle Pears Germ shield Pears Oil Clear

4. Launched in 1931 as a mild, family soap. Perhaps the only Indian-made natural soap at the time, Hamam was embraced by mothers and doctors alike, for its purity and safety on skin. Key Facts

A 300 Crore Herbal soap brand Market leader in Tamil Nadu

5. Key facts

Lux is the worlds most iconic beauty bar & has a 90 year history of glamour and pleasure.

The largest selling soap brand in the world The No.1 soap brand in India A $ 1 billion brand present in many countries across the globe

6. Launched as early as 1947, Rexona is a natural skin care soap that gives you silky soft skin through the use of natural ingredients.

7. Ayush Therapy range is endorsed by Arya Vaidya Pharmacy, one of Indias most reputed houses of Ayurveda and created by Hindustan Unilever Ltd., Indias leading FMCG Company.

8. .Key facts

One of the oldest soap brands in India A brand that has been consistent in bringing alive freshness A brand that has managed to create breakthrough advertising over the years

9. Key facts

Launched in 1988 as a family beauty soap with the promise of a fresh feeling of nature Comes in 3 attractive variants French Rose, Divine Sandal, Lemon Splash

Detergents

1.

A pioneer in the Indian detergent powder market, Surf Excel has constantly upgraded

itself over the years, to answer the constantly changing washing needs of the Indian homemaker.

2. Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic. Over the years, the brand has grown to become synonymous with sparking white clothes for its consumers. Rin detergent powder was launched in 1994. This was the first product extension from the iconic brand that stood for whiteness in laundry.

3. Magic is Unilevers revolutionary Water-Saver that removes all lather from clothes in just the first rinse.

4. One of India's largest detergent brands, Active Wheel aims to bring delight into the lives of millions of women across the country by giving them a blissful laundry experience reminiscent of the fragrance of thousands of flowers.

5. Sunlight has the innovative colour guard technology that keeps your clothes colours as new as ever, even after 40 washes. The No. 1 brand in the states it is present in, Bengal and Kerala.

BCG MATRIX -HUL products

Cash cows are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Dogs are more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a breakeven unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off. Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. Stars are units with a high market share in a fast-growing industry. When growth slows, stars become cash cows if they have been able to maintain their category leadership, or they move from brief Stardom to Dogdom

STARS
LUX
INDUSTRY GROWTH RATE Star Lux: Dove: Lifebuoy: Cash Cow Surf Excel: Has a market share of 37 % in 9000 Cr Market. Pears: Rin: HIGH LOW

QUESTION MARKS
RIN SUN LIGHT

DOVE LIFEBUOY

CASH COWS DOGS

SURF EXCEL PEARS WHEEL BREEZE

HIGH Market Share

LOW

Enjoys a market share of 16%. This industry has a high growth rate of 10%. HUL comes with different varieties quite frequently to maintain their market position.

Question Mark

Hul has 35% market share in detergent industry. Rin has only 4.8% market share

Major Competitors :Tide, Ariel

Sunlight:

Dog Wheel: Mainly for low based income. Market share is falling. Major Competitors: Fena, Nirma Breeze:

Strategies followed by HUL based on the BCG Matrix

Pan Pyramid straggling portfolio: Strong brands across benefits and price points. HUL being a
distinct market leader is present across various price points right from the economy to the superior/premium price points. Thus the presence of strong brands across categories which addresses needs of every consumer helps the company to gain high market share across its various categories.

Consumer value improved commodity cost benefit passed on: Further price deflation in quarter
has helped HUL pass on the lower cost benefit to the consumers and has thus helped gain market share in the soap category. Price wars also lead to consumers being able to buy/ prefer ones which offer lower price and has thus helped HUL.

Bigger, better and faster innovations:

Liquid portfolio expanded with launch of Surfexcel Liquid Vim Anti Germ Dish Wash liquid introduced Domex: Introduced acid based toilet cleaners. Lifebuoy color changing handwash was introduced Entry into fabric blues with the launch of Rin Perfect Shine Lifebuoy clini-care 10 launched The successful relaunch of Lux helped volume growth in the soaps segment and market share seems to be stabilizing now.

Pushing consumer for more usage: low cost sachets/mini packets, seasonal products, accessibility
and additive usage. Driving more usage and thus driving in more users and more driving more benefits to these users.

Competitive and compelling communication: more awareness, emotional connectivity, more

persuasive communication displayed by HUL gives a higher brand recall. HUL is the biggest FMCG player and has the scale to absorb increased ASP costs. Therefore increasing brand awareness for new and existing products improves brand equity in the longer run and HUL believe this is the right strategy at this point of time. This should also enable the company to focus on other high margin business such as personal products.

Highlighting benefits: Providing more benefits with expanded product range within a brand. Supply chain management: HUL prioritise speed and flexibility in its supply chain to deliver growth.
HUL are doing this through simple ideas. For example, in some of its detergent factories HUL are running 'twin track' on single production lines. This has helped us to nearly double its production thus enabling better customer service while improving operating efficiencies. Apart from this, today most of its production lines have developed the capability of quick changeovers to meet the market demand.

Increasing consumption in rural markets: focus on increasing consumption in rural areas. HLLs
distribution network is recognised as one of its key strengths -- that which helps reach out its products across the length and breadth of this vast country. The need for a strong distribution network is imperative, since HLLs corporate purpose is to meet the everyday needs of people everywhere. For rural India, HLL has established a single distribution channel by consolidating categories. In a significant move, with long-term benefits, HLL has mounted an initiative, Project Streamline, to further increase its rural reach with the help of rural sub-stockists. It has already appointed 6000 such substockists. As a result, the distribution network directly covers about 50,000 villages, reaching about 250 million consumers. Distribution will acquire a further edge with Project Shakti, HLL's partnership with Self Help Groups of rural women. The project, started in 2001, already covers over 5000 villages in 52 districts of Andhra Pradesh, Karnataka Madhya Pradesh and Gujarat, and is being progressively extended. The vision is to reach over 100,000 villages, thereby touching about 100 million consumers. The SHGs have chosen to adopt distribution of HLL's products as a business venture, armed with training from HLL and support from government agencies concerned and NGOs. A typical Shakti entrepreneur conducts business of around Rs.15000 per month, which gives her an income in excess of Rs.1000 per month on a sustainable basis. As most of these women are from below the poverty line, and live in extremely small villages (less than 2000 population), this earning is very significant, and is almost double of their past household income.

Stepping up front end execution: more stores, better stores and better service. HUL rolled out a
unique and innovative concept of 'Perfect Stores' as part of its endeavor to win with consumers at the point of sale.

Sustainability Strategy:
Small individual actions multiplied with our large consumer base will make a big difference in combating the issues society faces. For example, if one household uses Surf Excel detergent, it can conserve two buckets of water per wash. A million Indian households using Surf Excel can save enough water for meeting the basic hygiene needs of many Indians. Small innovations in HUL brands and business processes can lead to a big difference in society as they touch the lives of two out of every three Indians. In HUL, its Brands, customers and processes are the key drivers for sustainable growth and improvement in business processes. So HUL considers these factors as change elements in bringing BIG DIFFERENCE to the nation through their contribution by involving in the lives of every two out of every three Indians.